IB (finally?) admits to matching orders internally

Discussion in 'Interactive Brokers' started by None Business, Sep 29, 2017.

  1. d08

    d08

    Market orders are the only good option in many scenarios. There's an order to how marketable orders execute but I guess you never figured that out. Even HFT people recommend using market orders in tight spread situations vs. limit orders that just sit around waiting to be gamed.
     
    #81     Oct 7, 2017
  2. LOL of course HFT want market orders! That's exactly how they front run trades. Many moons ago, my team wrote the programs for matching on futures and options. If brokerage can match, they will...
     
    #82     Oct 7, 2017
  3. d08

    d08

    I'm not talking about HFT companies but people intimately informed about order priority. So let me assume when you send stops, they are only stop limits? You must be missing some big moves then...
     
    #83     Oct 7, 2017
    ThunderThor likes this.
  4. The priority starts at the broker and then the clearing house closes to parsing programs, guess where they reside
     
    #84     Oct 7, 2017
  5. Robert Morse

    Robert Morse Sponsor

    I was an option market maker for 25 year. I have been in the business since 1981. IMO, never, never, ever, ever use market orders for options, ever!!!!!!!!

    Your money, just don't blame market makers, the exchange or your broker if the markets go wide and you get a nasty fill. Also, avoid market orders on open and close. You have very little protection. Stocks yes, options no.
     
    #85     Oct 7, 2017
    viruscore1 likes this.
  6. Overnight

    Overnight

    Just more confirmation that OMM deserves the nick, hehe. Been in the business since 1981. Whooo!

    As to the original point, this is why I like futures. Even with illiquid instruments, I can get in and out at the price I expect by understanding the bid/ask differences, so no surprises. Not all that funny option stuff. Alas.

    Futures for teh win!
     
    #86     Oct 7, 2017
  7. I tried market order once. And noticed my sell market order was filled on the low for the day. Think about that for a moment...
     
    #87     Oct 7, 2017
  8. Overnight

    Overnight

    Which instrument? Remember...In futures at least, a market order is a guaranteed fill but not at the price you want. A limit order is a guaranteed price but not a fill. Should not be an issue if you are tossing around a few contracts, as opposed to hundreds.
     
    #88     Oct 7, 2017
  9. stock
     
    #89     Oct 7, 2017
  10. d08

    d08

    I'm talking about stocks and obviously you take liquidity into account when submitting orders. There are these times when you know volatility is crazy and every second counts, you can't afford to wait for your perfect fill because you'd miss the move. Imagine if the people who use catastrophic stops used stop limits instead, might as well use nothing...

    I use both MKT and LMT extensively, never had the problems you seem to be having. Sounds like you disregard liquidity and/or time of day, no wonder you get the worst prices. You've used market orders "once"? Alright.
     
    #90     Oct 8, 2017